The world of government contracting can seem incredibly daunting, but becoming a federal contractor also can be financially rewarding and help you expand your business opportunities. At Federal Contractor Registry, we can help you take the first steps toward becoming a federal contractor, but we also have some helpful tips and facts for those new to contracting.
- SAM Registration Is Required
You might have heard of System for Award Management (SAM) registration (also sometimes called CAGE code registration), and this is the typically the first step a federal contractor will take. You cannot bid do business with the federal government without completing your SAM registration and we can help with this often-arduous process, but we will discuss that service later in this article.
- Get Certified With The Small Business Administration (SBA)
Investigate whether your business qualifies for any small business certifications, such as 8a certification, Women-Owned Small Business (WOSB), Service-Disabled Veteran-Owned Small Business (SDVOSB), or HUBZone certification.
These certifications can make you eligible for set-aside contracts, reducing competition and increasing your chances of winning contracts. We can help with this process if you use our SAM registration services.
- Understand the Federal Procurement Process
Familiarize yourself with how the federal government buys goods and services and the types of government contracts. Learn about the procurement mechanisms, such as requests for proposals (RFPs), invitations for bids (IFBs), and government-wide acquisition contracts (GWACs). Understanding the process will help you navigate federal contracting more effectively.
- Build a Strong Capability Statement
Create a concise, compelling capability statement that outlines your business’s core competencies, past performance, differentiators, and the specific value you bring to federal agencies. This document is crucial for marketing your business to government agencies and prime contractors.
- Network and Build Relationships
Networking is key in federal contracting. Attend industry days, conferences, and other events where you can meet government officials, prime contractors, and other federal contractors. Building these relationships can lead to partnerships, mentorship, and subcontracting opportunities.
- Leverage Subcontracting Opportunities
Starting as a subcontractor to a prime contractor can be an excellent way to gain experience in federal contracting. It allows you to contribute to federal projects, build your past performance record, and learn the ropes of federal contracting with less risk. For instance, you can browse through the SBA’s SubNet system to determine if any subcontracting opportunities are available for companies that provide your specific goods or services.
- Focus on Quality Proposals
When responding to RFPs, focus on quality over quantity. Tailor each proposal to the specific requirements of the solicitation, clearly demonstrating how your services or products meet or exceed those needs. Pay close attention to the evaluation criteria and ensure your proposal is comprehensive, compliant, and competitive.
Beyond Compliance: Why SAM Is An Effective Business Tool
Many business owners think of SAM registration just as a requirement to become a federal contractor, but it yields other advantages as well. Businesses can leverage their SAM registration beyond mere compliance to strategically position themselves within the federal marketplace, unlock various opportunities, and foster business growth. Here are several ways to use SAM registration as a strategic asset:
- Enhanced Visibility to Government Buyers
By optimizing the company’s profile in SAM, businesses can make their capabilities, past performance, and certifications more visible and appealing to government agencies and prime contractors seeking subcontractors or vendors. A detailed profile can serve as a marketing tool within the federal procurement space.
- Eligibility for Set-Aside Contracts
SAM registration allows businesses to qualify for various set-aside opportunities designated for small businesses, women-owned small businesses, veteran-owned small businesses, 8(a) businesses, HUBZone businesses, and more. This can significantly reduce competition and increase the chances of winning government contracting jobs.
- Subcontracting Opportunities
Many large government contracts require prime contractors to allocate a portion of their work to small businesses. By being visible in SAM, small businesses increase their chances of being approached for these subcontracting opportunities, allowing them to participate in larger projects and grow their government contracting experience.
- Access to Exclusive Resources & Training
Registered businesses can access various resources, tools, and training opportunities provided by federal agencies. These resources are designed to support businesses in navigating the federal contracting landscape, understanding procurement processes, and improving their competitiveness.
- Improved Networking & Partnerships
As we stated above, networking is crucial for success in government contracting. SAM registration can facilitate networking by helping businesses identify potential partners for joint ventures or teaming agreements on larger contracts. This can be particularly beneficial for small businesses looking to expand their capabilities and bid competitively on larger projects.
- Direct Marketing to Agencies
Businesses can use their SAM registration as a launchpad for direct marketing efforts to government agencies. By understanding agency needs and procurement trends, businesses can tailor their outreach and proposal efforts to match, demonstrating their capabilities and how they can meet specific agency requirements.
- Strategic Bidding Insights
Linked platforms, like SAM.gov, offer access to past contract awards and upcoming opportunities, enabling businesses to conduct market research, understand government buying patterns, and strategically position their bids.
- Building Credibility
Maintaining an active and compliant SAM registration signals to government buyers and prime contractors that your business is serious, reliable, and ready to engage in federal contracts. This credibility can be a significant advantage in the competitive federal marketplace.
- Streamlining Procurement Processes
With SAM registration, businesses can streamline their participation in federal procurement processes, making it easier to submit bids, receive awards, and conduct transactions, thanks to the centralized and standardized system.
By leveraging SAM registration strategically, businesses can unlock new growth opportunities, enhance their visibility in the federal marketplace, and establish themselves as a competitive and reliable federal contractor.
Get Started With SAM Registration
If you want to bid on any federal government contractor jobs, you must have an active SAM registration. At Federal Contractor Registry, we handle hundreds of SAM registrations and SAM renewal for companies of all sizes and across many industries.
As you may know, the government does not charge a fee for SAM registration, but it’s a complicated and often frustrating process, which is why people will hire us to handle this task for them.
Our fee, however, does not just include your SAM registration. We also will help you obtain your UEI number (Unique Entity Identifier), which is a new SAM requirement. In the past, you needed to provide your DUNS number, but that has been phased out and replaced with the UEI.
We also will help you with the SAM notarized letter requirement, which is a form letter that you must send to the Federal Service Desk to identify the Entity Administrator of your SAM account. Additionally, if applicable, we will help you sign up with the SBA and we can determine which set-aside programs might be the best fit for your small business.
While becoming a federal contractor can seem a bit overwhelming, once you get the hang of the process and start making some contacts, the mystery of contracting will become must clearer and likely quite profitable. If you are ready to get started and would like assistance with SAM registration, you can call us at 800-985-7658 or click on the New Registration tab on our homepage.